The major moving averages (the 50 and 200 dailies) that once served as support are now marking resistance.

Heavy selling volume from institutional grade accounts has left an “air of the bear” across nearly every sector.

News wise, second- quarter earnings season is two months away, and the next Fed meeting is about five weeks away.

Due to lack of stimulus, we might not see a whole lot of action in the coming weeks.

Technically speaking:

The Dow Industrial Average
($INDU), +1.2 %, regained its 50-day moving average after two weeks of heavy selling.

The S&P 500
($SPX), +1.0 %, dipped below its 200-day moving average before posting a gain on the week as it continues to trade below its 50-day average. The index is trying to reverse on a key upward trend line.

Nasdaq
($COMPQ), 0.8%, rallied after two losing weeks, though is trading well below its major moving averages. The index is trying to reverse on a key upward trend line.

New single-family home sales unexpectedly jumped 4.9% in April to a 1.198 million unit level, the second consecutive monthly increase. While March new home sales were downwardly revised to 1.142 million units, they were still 12% higher than in February.

Existing home sales fell 2.0% in April to 6.76 million units at an annual rate. This was lower than consensus forecasts of 6.79 million. Existing home sales are down 5.7% in the past 12 months.

The median price of a new home rose to a non-seasonally adjusted $238,500 in April, up 0.9% in the past year.

The median sales price of an existing home was $223,000 in April, 4.2% higher than a year ago. This is the slowest YOY gain in the median price of an existing home in over five years.

New orders for durable goods fell by a more-than-expected 4.8% in April. But this decline follows a 6.6% increase in March and a 3.6% gain in February. Durable goods new orders are up a strong 11.3% in the past year.

Transportation orders slid 12.7% in April. Excluding transportation, new orders fell 1.1% after a 3.5% gain in March, and are up 10.3% in the past year. Excluding defense, orders declined 3.8% in April versus a 6.3% surge in March.

Personal income increased 0.5% in April, after an identical increase in March. Personal income is up 5.4% in the past year. Wages and salaries jumped 0.9% and are up annualized 7.7% in the last three months and 5.3% in the past year.

Personal consumption increased 0.6% last month after a 0.5% gain in March. Consumption is up 6.2% in the past year.